How Much Are F1 Teams Worth? Most To Least Valuable Teams In 2023 Summarized

Many Formula One fans wonder how much their favorite F1 teams are worth, and the latest estimates reveal surprising numbers.

Formula One used to be a sport that wasn't profitable for the teams participating. The huge car manufacturing brands would spend all the money they could get to support the development of their cars.

This endless race to spend more and more money would result in some teams spending as much as $400 million a year. The smaller teams, of course, had no chance to compete as a result.

However, everything has changed in recent years, with budget caps being introduced to the sport, limiting how much all the teams can spend on their development.

This resulted in the grid converging, closer battles between the teams on track, and an increase in the team's earnings as they suddenly saw a money surplus.

According to Forbes, an F1 team is worth $1.88 billion on average in 2023, which is a 276% increase compared to the average valuation from 2019, when an average team was estimated to be worth around $500 million.

The introduction of cost caps has been only one of the many causes of the increase in valuation. Some others include the increase in popularity of the sport in the United States due to Netflix's "Drive To Survive" series and the introduction of new races in the United States.

The United States is one of the most valuable markets in the World, and with an increase in popularity in the U.S., many advertisers are becoming more and more interested in sponsoring teams and F1 events.

In 2018, the average F1 team lost $200 million in operating income, according to Forbes, while in 2023, the average F1 team made $600 million in EBITDA.

Source: Forbes